Spending money is the easy part, but trying to save it can be tough. Once you have paid your bills and bought a few things, you want there is often not much left to put away for the future.
Most people don’t know exactly where all their money goes. Often it is the small purchases that add up month by month. If you are unaware of those small purchases, you can find yourself back at zero after every paycheck.
It might be time to take the no spend challenge. The no spend challenge is a great way to test or resilience to spending and increase your savings fast. It helps you get real with what you spend on needs and what you waste your hard-earned money on.
Why Do A No Spend Challenge?
Do you feel like you’re pretty good with money, but yet you are unable to squeeze that little extra into your savings? The no spend challenge can help you identify the small spending habits eating at your savings. Habits as minor as buying a snack every time you fill up for gas or grabbing a coffee on the way to work instead of making one at home.
It has been said, “you are 100% blind to the things you cannot see.” If you don’t know where your money is going, you can’t fix it. A no spend challenge helps you become conscious of your spending habits and highlights the problem areas.
No matter how long or short it is, a no spend challenge can be fun. You can do anything for a short period of time, especially if you know it will be good for you and your future. Looking ahead at a mountain like a house deposit or a retirement fund can become overwhelming. Often big goals like that need to be broken down into incremental steps that are more obtainable. Remember, from little things, big things grow.
How To Do A No Spend Challenge
Choose a Time Frame for the Challenge
If you have big saving goals, make it a month! If a month is too hard, start off with a no-spend week. The purpose of the challenge is to become aware of your spending and increase your saving.
Plan Your No-Spend Challenge by Writing a Budget
The no-spend month or week concept is to only spend money on needs such as utilities, rent, groceries, and transport. Make your budget as tight as you can while keeping it achievable.
Set Some Ground Rules
You want to ensure that this challenge is obtainable, so write down some clear instructions on what you will do in an emergency or if an unexpected outing comes up. Prepare for the ‘what ifs’ of the month ahead.
Prepare To Win
Invite a friend to join the no spend challenge with you. Having someone to keep you accountable can be just the ticket to keep money in your pocket. Find motivation through podcasts that align with your goal. Check out Financer. coms’ list of best personal finance podcasts for 2021.
You might be thinking this challenge seems easy. It’s not, but it is simple. You will need some grit and self-determination to achieve it. But saying no to trivial spending today can open up new opportunities you can say yes to tomorrow.
About the Author
Jeremy Biberdorf is a long time website marketer turned online entrepreneur. Follow his site https://modestmoney.com for investing tips and advice.
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